Postcard on the Run
DEAL
EPISODE SUMMARY
🕓 Air Date: September 20, 2013
Asking For:
$300,000 for 5%
Investor:
Robert Herjavec
Deal:
$300,000 for 7.50%
PRODUCT SUMMARY
Postcard on the Run offers a modern way to send personalized postcards directly from a mobile phone, combining photos with handwritten notes.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Josh Brooks, the founder of On the Run Tech and Postcard on the Run, is a tech-savvy entrepreneur based in Silicon Valley, California. Drawing from his extensive background in marketing for MySpace during its peak years, Brooks recognized a gap in modern communication methods. Faced with the challenge of navigating through thousands of digital photos stored on various devices, he realized the lack of meaningful ways to share these memories beyond fleeting social media posts or digital messages.
Brooks envisioned a solution that would combine the convenience of digital communication with the emotional resonance of physical mail. This vision led to the creation of Postcard on the Run, a platform that enables users to send personalized postcards directly from their mobile phones. Leveraging his expertise in digital marketing and user experience, Brooks designed the app to streamline the process of creating and sending postcards, allowing users to capture moments, write handwritten notes, and add personal touches with ease.
Located in the heart of Silicon Valley, On the Run Tech is at the forefront of innovation in digital communication. Brooks’s entrepreneurial journey reflects his passion for connecting people through tangible memories, driving the development of Postcard on the Run as a modern solution for preserving and sharing cherished moments in an increasingly digital world.
The Product
Postcard on the Run revolutionizes the traditional postcard experience by allowing users to seamlessly send personalized postcards directly from their mobile devices. The app simplifies the process, enabling users to capture moments, write handwritten notes, and add digital signatures with a telestrator feature. Additionally, users can attach short videos to their postcards via QR codes, adding an interactive element to their messages.
The product offers numerous benefits, including convenience, personalization, and the tangible nature of physical mail. Users can easily retrieve addresses through the Postal Gopher technology, even with limited information such as an email or cell phone number. Postcards are printed on high-quality 4×6 glossy paper and delivered to recipients worldwide in a matter of days.
Postcard on the Run operates on a freemium model, with the app available for free download on both iOS and Android platforms. Each postcard costs $2.49 to send, with users having the option to purchase credits or subscribe to premium features for enhanced customization and convenience. With its user-friendly interface and innovative features, Postcard on the Run offers a modern solution for staying connected and sharing memories with loved ones near and far.
How It Went
The company’s position before Shark Tank
On the Run Tech, the company behind Postcard on the Run, has demonstrated impressive growth and traction in the digital communication market. With headquarters in Silicon Valley, California, the company has positioned itself at the forefront of innovation in the tech industry. The company’s primary partner is Selena Gomez, a well-known celebrity investor who has supported On the Run Tech through multiple funding rounds. Additionally, the company has attracted interest from other investors, although specific partnerships beyond Gomez are not disclosed.
Postcard on the Run primarily serves individual customers seeking personalized communication solutions. The app’s target demographic includes individuals aged 21 to 45, with a focus on females interested in preserving and sharing memories with friends and family. Funding for On the Run Tech has primarily been sourced through multiple rounds of investment, totaling $1.6 million. Despite generating $450,000 in revenue within 21 months of operation, the company faces financial strain, with only $185,000 in available capital remaining. This financial pressure highlights the need for strategic investment and sustainable revenue growth to ensure the company’s long-term viability.
The company’s current structure likely involves a core team of developers, designers, and marketing professionals dedicated to maintaining and improving the Postcard on the Run platform. Additionally, strategic partnerships with printing and delivery services facilitate the efficient production and distribution of physical postcards to customers worldwide. However, the company’s financial challenges underscore the importance of strategic planning and financial management to navigate market dynamics and ensure continued growth and success.
The Negotiations:
During the negotiations on Shark Tank, Josh Brooks, the founder of On the Run Tech, sought $300,000 for 5% equity, valuing the company at $6 million. The Sharks expressed skepticism about this valuation, given concerns about the company’s sustainability and lack of proprietary technology. Despite showcasing impressive revenue figures and attracting notable investors like Selena Gomez, Brooks faced scrutiny over the company’s long-term viability.
Robert Herjavec emerged as the most interested Shark, offering $300,000 for 7.5% equity, valuing the company at $4 million. Although this represented a compromise from Brooks’s initial asking price, he ultimately accepted Herjavec’s offer, recognizing the strategic value of the partnership and the need for additional capital to fuel the company’s growth. The negotiation process highlighted the tension between Brooks’s valuation and the Sharks’ perceptions of the company’s value and market potential.
While Brooks initially resisted compromising on valuation, he ultimately recognized the benefits of securing a deal with a seasoned investor like Herjavec. The negotiations underscored the importance of strategic decision-making and compromise in securing investment opportunities and advancing the company’s objectives. With Herjavec’s investment and strategic guidance, On the Run Tech aimed to accelerate its growth trajectory and solidify its position in the competitive digital communication market.
